Build-up of boxes and lack of capacity in run-up to new year holiday
European freight forwarders have been hit by delays to shipments out of Asia because of a build-up of cargo in the run-up to the Chinese New Year factory closures.
Contacts said that a lack of vessel capacity and an increase in shipments, as firms looked to rush out merchandise before factories closed for the two-week holiday, resulted in many containers being rolled-over – not transported on the vessel they were booked on.
Reports of how widespread the problems were have varied.
One contact pointed out there were always problems with container roll-overs in the run-up to Chinese New Year, but another told IFW this year had been the worst yet.
One forwarder said he had heard some companies had issues, but his had not been badly affected. He pointed out, however, that he worked for a larger company with better buying power than smaller firms.
One firm was reported to have had 10% of its containers failing to be shipped as booked.
A UK forwarder said: “The carriers are either leaving it behind, or they’ll take it from China and pull it off the ship at a transhipment port such as Singapore or Port Klang.
“They want to get the booking and move it out of China. They know the vessels after Chinese New Year are going to be empty.
“It’s caused us, and others, a lot of problems. It’s the worst period for roll-overs I’ve known.”
More than one contact suggested that certain shipping lines were taking too many bookings in the run-up to the factory closures to ensure they had volumes for the quiet period that followed the holiday.
Unlike the capacity crisis that hit shipping lines and freight forwarders in late 2009 and early 2010, rates have not increased, because of a lack of capacity.
According to the Shanghai Containerised Freight Index (SCFI), rates from Shanghai to Europe slipped to US$1,305 per teu for the week ending 11 February, compared with $1,316 per teu for the last week in January.
It has been suggested the declining rates, even though vessel space has been tight, were caused by carriers looking to secure bookings for the period after Chinese New Year.
Damian Brett | Mon, 21 Feb 2011